Multinational corporations (MNCs) adeptly manage Liabilities of Foreignness (LOF) and Assets of Foreignness (AOF) to their advantage, and central to this endeavor is the strategic management of their foreign identity. Our research identifies a critical context where foreign identity remains a liability: organizational crises. Drawing on organizational identity and legitimation process theories, we contend that foreign firms face greater legitimacy losses compared to domestic firms during crises due to magnified foreign identity and differences in legitimacy standards. Furthermore, a crisis in one foreign firm can trigger stronger negative spillover effects on other foreign firms than on domestic firms. We test our theory through an analysis of US automobile recall events, demonstrating significant legitimacy impacts for foreign firms. Our findings illuminate the complex dynamics of foreign identity management, offering new insights into the persistent challenges of LOF during times of crisis.

中文翻译：

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外国人身份和组织危机：美国汽车行业的证据


跨国公司 (MNC) 熟练地管理外国负债 (LOF) 和外国资产 (AOF)，以使其发挥优势，而这一努力的核心是对其外国身份的战略管理。我们的研究确定了外国身份仍然是一种负担的关键背景：组织危机。借鉴组织身份和合法化过程理论，我们认为，由于外国身份的放大和合法性标准的差异，外国企业在危机期间比国内企业面临更大的合法性损失。此外，一家外国公司的危机对其他外国公司的负面溢出效应可能比对国内公司的负面溢出效应更大。我们通过对美国汽车召回事件的分析来检验我们的理论，证明了对外国公司的重大合法性影响。我们的研究结果阐明了外国身份管理的复杂动态，为危机时期 LOF 持续面临的挑战提供了新的见解。